In 2023, there is growth in the *** smart home market due to various smart home devices. At the same time, software and services growth is expected to accelerate further in the near term. This series of articles reviews the market in 2023 and previews what could happen in 2024.
Needless to say, smart homes have become an increasingly popular concept among residents and homeowners. Smart home is about the Internet of Things and a certain level of artificial intelligence to make home life smarter and more automated. Asking Alexa or Google to turn on the lights and ** your favorite radio station is an experience that more and more people are pursuing.
Overall trends for 2023
So, how is the market performing in 2023?Jack Narcotta, chief analyst of Omdia smart home, said that due to the increase in shipments of various smart home products.
I estimate that total shipments in the smart home market will grow by about 25% year-over-year by 2023. Approximately 10 billion new devices, including cameras, light bulbs, plugs, video doorbells, and more, are making their way into consumers' homes. The main growth driver for almost all categories is that the average selling price (ASPs) continue to shrink, especially in large categories such as light bulbs, indoor and outdoor cameras, and video doorbells, making it easier for consumers to add to their existing smart home solutions or try smart home for the first time," Narcotta said.
In addition to the **decline, 2023 saw an increase in the maturity and availability of software and subscription services, making smart home devices more fun and smart. For example, the average Amazon user can only choose from a limited range of ad-loaded songs to listen to from their smart speakers;Paid premium members, on the other hand, can on-demand almost any song from millions of tunes on the Amazon platform.
"One of the biggest trends is that software and services are quickly becoming milestones in the consumer smart home buying journey. For consumers, the most popular devices, especially indoor and outdoor cameras, video doorbells, and light bulbs, are lower, and remain a strong selling point. In addition to a larger cloud-based storage cache, subscription-based services unlocking additional features or signing up for home monitoring services are generating more interest from consumers, especially early adopters who want to do more with their line of smart home devices," Narcotta said.
Challenges remain
Despite these positive developments, there are still challenges in the smart home space in 2023. "One of the tighter challenges for the smart home is that, in general, it's one'It's a pleasure to have', and not'Need to have'。One of the biggest hurdles brands need to overcome is the perception that many smart home devices are "inconvenient" – that is, in the case of smart light bulbs, many consumers wonder why they need to use an app to control their living room lights, while the "stupid" switch on their wall has worked well for years. Narcotta said.
It remains to be seen whether this will change in the short term. Much depends on whether the solution provider is able to sell the idea that "the smart home way of doing things is better than the way of doing things", as Narcotta puts it. Again, take smart light bulbs as an example, once they are connected to a hub-like device, they can turn on and off or adjust to different intensity levels depending on the voice commands given by the user. Once users Xi get used to this, it's hard for them to get back to their previous way of working.
What's new in Matter
One topic that has been widely discussed this year is Matter, a standard supported by Amazon, Apple, Google, Comcast, and the Zigbee Alliance (now the Connectivity Standards Alliance (CSA)). While Matter aims to be a unified standard for interoperability between smart home devices from different vendors and brands, its overall market response has been a bit drowsy.
Matter showed itself in the first year'ok'Finish. It was listed on CES in March 2023 and flourished after its official launch in Amsterdam a few months ago, although it hasn't quite reached the level of hype since then. I don't think it's a bad thing because it's a big effort involving several well-known companies, and a lot of egos in the room always slow down the effort of the whole team," said Narcotta. "Adoption has been slower than expected, with big companies like Belkin and Signify (Philips Hue) either exiting altogether or pausing for a few months each. Matter is already months behind the CSA's original schedule, as cameras and video doorbells aren't ready for Matter's slot.
"That said, Matter continues to address technology and go-to-market issues quickly, and appears to be quickly catching up with its initial timeline," he added. Matter may not have a significant impact on consumer smart home device shipments in 2024, as the delay in Matter means that most consumers will need more time to understand what Matter is and what its value proposition means for them.
This article is translated from ASMAG International Edition**, Security Automation.